Please refer this office letter of even number dt. 20.03.2018 (RBE No. 41/2018) on the above subject. In partial modification to the letter dt. 20.03.2018 ibid, it is advised that the second sentence of the said letter may be read as under:-

“This issue of revising the date of effect of OTA w.e.f. 01-01-2016 was taken up by the Federations (NFIR & AIRF), and was also raised in PNM forum by NFIR as item No. 06/2018. The issue has been considered and it has been decided that the basic pay and DA element for the purpose of OTA may be antedated to 01-01-2016 and other elements constituting emoluments for the purpose of OTA viz. HRA and Transport allowance etc. shall be taken into account at revised rates w.e.f. 01-7-2017 as per the 7th CPC recommendations.”

2. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.